6 ways to protect yourself from cyber fraud threats

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In today's digital age, convenience meets financial needs, but it also brings forth the looming threat of cyber fraud. In FY 2021, the domestic payments fraud recorded by the regulated businesses in India was around ₹542.7 crore; in FY 2023, it was about ₹2537.35 crore. In FY23, 9926 cases of digital loan app-related fraud were reported. 

Bankers are vulnerable to a variety of frauds since cybercriminals target individuals in need or are inclined to fall for a fake financial offer. To obtain a loan, borrowers intentionally lie or withhold important information. 

Unscrupulous lenders further the situation by charging exorbitant interest rates, offering loans without papers, or exploiting consumers' personal information. In India alone, banks registered over 9,000 banking and loan fraud complaints in the past year, with a cumulative total exceeding ₹60,000 crore.

Common loan fraud schemes and their prevention include the following:

Loan fee scams: Beware of swindlers promising loans with implausibly low interest rates and demanding upfront fees for processing, documentation, or insurance. Generally, legitimate lenders deduct processing fees from the loan amount; therefore, never pay processing fees in advance, especially using unconventional payment methods such as gift cards or cryptocurrency.

Fake loan offers: Scammers may contact borrowers via email, text, or phone with enticing loan offers while requesting sensitive personal information. To avoid becoming a victim, you should only conduct business with reputable financial institutions and refrain from sharing sensitive information unless the lender's legitimacy has been verified. Legitimate lenders leverage automated data verification platforms to ensure the